Tesla and Panasonic, partners for Gigafactory image

The first gigafactory in the world is now closer to become a reality as Tesa and Panasonic officially announced they will work together on a gigafactory. These two companies have been previously working together for many years on electric vehicles, and now they are taking their partnership to a new level.

Even if the agreement itself has not been released yet, Tesla will deal with the exterior of the project like the land, the buildings and the utilities, while Panasonic pays for the machines working on the inside to “manufacture and supply cylindrical lithium-ion cells” which Tesla will use for building battery packs. According to the press release, Panasonic’s machines will take up ½ the space and another network, unnamed yet, will deal with the other half.

The exact location of the factory will be revealed by the end of the year. This means that we won’t be seeing any battery packs from the Gigafactory coming out soon, which is why Panasonic will continue to build Tesla cells in the meantime in Japan. As it was previously announced, the Gigafactoory is expected to produce enough batteries for 500,000 EVs a year and even more for stationary storage needs, meaning 35GWh worth of cells and 50 HWh worth of packs annually by 2020.

By Gabriela Florea